The instability of the French government and the complete rejection of the opposition’s vote of confidence have left the minority government led by Prime Minister François Bayrou in France in danger and could collapse in the next vote of confidence on September 8.
Political experts and Finance Minister Eric Lombard made it clear that if Bayrou’s power ends, it will be necessary to reconsider the plans presented to reduce the budget deficit, especially when the vote of confidence is due on September 8.
Thus, French President Emmanuel Macron is facing economic pressure and financial risks. France’s budget deficit is around 5.4% to 5.8% of GDP and public debt has reached 116%, which is causing severe financial pressure.
Financial markets are feeling uneasy, bond markets are being affected and investors are reacting.
UBS has proposed a special strategy to deal with the market uncertainty, political confrontation and preparations for elections are underway.
The National Front (RN) is on a new recruitment drive to boost its political power, with candidates being rigorously vetted. Former President Nicolas Sarkozy has signaled an improvement in the RN’s reputation, calling its political popularity a “general” sign, signaling a shift in France’s political balance.
A sharp decline in public trust has seen public confidence in President Emmanuel Macron drop to just 15 percent, down 6 points since July 2025.
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